Qualcomm gives up on buying chip giant NXP

Qualcomm has been trying to buy giant chip maker NXP for the better part of two years. All that patience might not have paid off, however. Qualcomm is planning to drop its bid for NXP by the end of July 25th (that's today, if you're reading in time). Its executives reportedly expect Chinese regulators to shoot down the deal, with CEO Steve Mollenkopf pinning it partly on the "current geopolitical envi ronment." In other words, Trump's trade war with China is dimming what chances were left of a merger.

It didn't completely rule out an end to the attempt, but there would have to be "material developments" before midnight Eastern time, which didn't seem likely. An exit would be costly -- Qualcomm would have to pay NXP a $2 billion termination fee, and it'd launch a stock buyback program that would snap up $30 billion of its common shares.

As it stands, Qualcomm will have to rethink its strategy. It hoped to buy NXP to expand into areas beyond its core mobile chip business, including the automotive world, the Internet of Things and security. For now, it has to either spend more time developing in-house technologies in those areas or focus on what it's already doing. That's not such a bad thing with better-than-expected earnings this quarter and 5G wireless promising a lot of business in the future, but it was clearly hoping that NXP would play a part going forward.

Via: MarketWatch, CNBC

Source: Qualcomm



via Engadget RSS Feed https://ift.tt/2Aa7ig9
RSS Feed

If New feed item from http://www.engadget.com/rss-full.xml, then send me

IFTTT

Comments

Post a Comment

Popular posts from this blog

Evernote cuts staff as user growth stalls

Image
Note-taking app Evernote has fallen on hard times of late, culminating in its latest spate of job cuts impacting 15 percent of its workforce (54 employees). CEO Chris O' Neil -- an ex-Googler who took the reins in 2015 -- announced the firings at an all-hands meeting earlier today, reports TechCrunch . In a message on the Evernote blog , O' Neill admitted he'd set "incredibly aggressive goals" for the company in 2018. He continued: "Going forward, we are streamlining certain functions, like sales, so we can continue to speed up and scale others, like product development and engineering." The layoffs follow an exec exodus just weeks ago and the company's recent brand refresh (complete with a refined logo and wordmark). But critics are more concerned about its product, especially the free tier, which they claim lacks the perks to...
Read more

The best air conditioner

Image
By Liam McCabe This post was done in partnership with Wirecutter . When readers choose to buy Wirecutter's independently chosen editorial picks, it may earn affiliate commissions that support its work. Read the full article here . After six summers of researching, testing, and recommending window air conditioners, we've learned that quiet and affordable ACs make most people the happiest—and we think the LG LW8016ER will fit the bill in most rooms. This 8,000 Btu unit cools as efficiently and effectively as any model with an equal Btu rating, and runs at a lower volume and deeper pitch than others at this price. Little extra features like a fresh-air vent, two-axis fan blades, and a removable drain plug help set it apart, too. The LG LW8016ER is a top choice for an office or den, and some people will find it quiet enough for a bedroom, too. If our main pic...
Read more

We won't see a 'universal' vape oil cartridge anytime soon

Image
Pre-loaded cartridges of cannabis concentrate are currently among the most popular means of consumption, and for good reason. They're discreet to use and easy to handle, a far cry from the dark days of 2016 when we had to dribble hash oil or load wax into narrow-mouthed vape pens by hand. But, frustratingly, an ever increasing number of oil cartridge manufacturers employ one-off design standards so that their products won't work with those of their competitors, thereby locking customers into proprietary ecosystems. We've already seen this with nicotine vaporizers -- which has a seen a massive rise in "pod systems" in the last few years, each outfitted with a unique canister and battery built to be incompatible with those of their competition. Is it too late for the burgeoning cannabis industry to set a universal standard for their product designs? ...
Read more